TIDMPARK
RNS Number : 4655X
Park Group PLC
30 April 2019
30 April 2019
Park Group plc
("Park" the "Company" or the "Group")
Year End Trading Update
Reappointment of Laura Carstensen as Chairman
Notice of Results
Park Group plc, the UK's leading multi-retailer redemption
product provider to corporate and consumer markets, announces an
update on trading for its financial year ended 31 March 2019 and
its Notice of Results.
Year End Update
Trading & Financial Update
Group trading for the year was ahead of our expectations,
despite the impact of an additional GBP0.5m of costs relating to
investment in the new strategic business plan that we outlined at
the time of our half year results. This was driven by a strong
performance from our Corporate business and a broadly stable
performance from our Consumer business, reflecting the evolving
Christmas Savings market.
However, the particularly strong growth in our more profitable
card business means that the financial impact of the new accounting
standard IFRS15 is now expected to be approximately GBP0.5m higher
than previously anticipated, as a greater proportion of profit will
be deferred until the current year.
Accordingly, despite the strong underlying trading performance,
reported PBT (before exceptional items) is expected to be
marginally below market expectations*.
Having taken the decision to move to new offices, we anticipate
incurring an exceptional impairment charge of approximately
GBP1.25m on the carrying value of our existing site.
*current Company compiled analyst consensus forecasts: GBP12.9m
PBT on revenue of GBP112m (post IFRS15).
Outlook
The Board anticipates the trends experienced in the year just
ended will continue, with good growth in Corporate business
partially offset against a slower Consumer Christmas savings
market. Additional costs (net of initial expected cost savings) of
GBP2.0m associated with implementing the strategic business plan
have been identified, which will be incurred during the current
financial year, reflecting the initiatives described below.
These costs (which reflects both one off and ongoing costs) will
relate to running two sites as we transition to the new offices, as
well as additional technology and marketing investment.
The benefits of the changes are expected to accrue in subsequent
financial years both in terms of directly enhancing profitability
and in terms of positioning Park to continue developing and growing
in its fast-moving sectors. Overall, the Board therefore
anticipates profitability will be lower in the current year before
growth resumes thereafter.
Strategic Progress
We have made good progress through the initial steps of our
strategic business plan (as set out in December 2018) to enhance
how we work with consumers, businesses and retailers. In relation
to the four pillars of the strategy, specific actions include:
-- Clarity: we have separated the hampers business, under a new
discrete management team. We have invested in our people having
appointed a Chief Transformation Officer, to help execute the
changes we are making, a new Human Resources Director, and a new
Interim Head of Marketing.
-- Experience: we continue to drive product and customer
innovation, becoming an organisation anchored on digital. We have
selected a new Enterprise Resource Planning (ERP) system, Microsoft
Dynamics, which provides scalability, resilience and
efficiency.
-- Productivity: we have signed a lease for our new offices in
Liverpool city centre, which we believe will ensure an integrated
working culture as well as retain and attract talented staff. We
expect to move in during late summer 2019.
-- Appeal: we continue our work in relation to the launch of a
new product, targeting currently untapped demand from a broader
audience.
We will provide an update on the four pillars of the strategic
business plan with the results in June.
Ian O'Doherty, Chief Executive of Park, said:
"Park delivered another good performance last year and,
importantly, we put in place our new strategic business plan. We
are beginning to make tangible progress delivering the initial
steps of the plan, in terms of premises, people and digital
investment. This investment is expected to result in enhanced
growth prospects and a more robust business model, putting us in a
much stronger position for the future."
Reappointment of Laura Carstensen as Chairman
The Group is also pleased to announce that Laura Carstensen has
agreed to continue as non-executive Chairman for another three
years from 3 June 2019.
Ian O'Doherty, Chief Executive Officer of Park, said:
"This is excellent news for Park. Laura has a thorough
understanding of our business and has been instrumental in guiding
us through a period of change."
Laura Carstensen added:
"I am delighted to continue as Chairman of Park. Having
announced a review of our business strategy last year we are now
working hard to both grow the business we have and develop our
business for the future in line with our refreshed strategic
thinking. I am pleased to continue my involvement in this exciting
process and I look forward to working with Ian, Tim and their
strong executive team as we strive to deliver it. Our relocation
later this year to new offices in Liverpool exemplifies our
commitment to moving our business forward and our commitment to our
fantastic Park people."
Notice of Results
The Group will announce its final results for the financial year
end 31 March 2019 on Wednesday, 12 June 2019.
END
For further information please contact:
Park Group plc Arden Partners plc MHP Communications
Ian O'Doherty Paul Shackleton Reg Hoare
Tim Clancy Steve Douglas Katie Hunt
Benjamin Cryer Patrick Hanrahan
Charles Hirst
Tel: 0151 653 1700 Tel: 020 7614 5920 Tel: 020 3128 8193
Notes to Editors:
Park is the UK's leading multi-retailer redemption product
provider to corporate and consumer markets. Park is dedicated to
providing its new and existing customers access to its offering
through easy to use products, supported by intuitive and innovative
digital platforms combined with its sales and customer services
teams. As part of its strategic plan the company has pledged to put
digital first, exploring technology solutions to broaden its
physical and virtual payment capabilities. Park recently unveiled
its new Love2Shop app, which gives consumers access to one
integrated mobile platform.
Consumers can access Park's multi-retailer redemption product
directly or via its leading Christmas Savings offering, which
currently helps over 426,000 families budget for Christmas. Park
also provides around 37,000 business customers with market-leading
incentive, recognition and rewards options for an estimated 2
million recipients through 189 retail partners with over 25,000
outlets.
Park Group plc's shares are traded on AIM, a market operated by
the London Stock Exchange.
For further information on Park Group please visit:
www.parkgroup.co.uk
The Park Prepayments Protection Trust is designed to increase
protection for customers' prepayments. The Trust has three
directors, two of whom are independent of Park. Details of the
trust are set out here:
https://www.getpark.co.uk/CORPORATE/declaration.pdf
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END
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